Policy decisions, Obamacare to cost NHRMC $20 million

Published: Wednesday, January 8, 2014 at 12:46 p.m.

Last Modified: Wednesday, January 8, 2014 at 12:46 p.m.

Obamacare and related federal and state policy decisions will cost New Hanover Regional Medical Center nearly $20 million this year, according to hospital President and CEO Jack Barto.

In a blog on the hospital website, Barto said NHRMC is trying to overcome "many policy decisions at the state and federal levels." Barto wrote the blog to answer questions he gets about how Obamacare is affecting NHRMC.

Barto said the benefits of Obamacare, also known as the Affordable Care Act, have not been realized, but that the "downsides are impacting everything we do."

Nationally, Obamacare has turned health care into a heated political topic. The inadequacies of the enrollment system have been well documented and President Obama's statement that Americans would be able to keep their current insurance plans was voted as Politifact's top lie of 2013.

Barto does not use the words "Republican" and "Democrat" in his blog. He mentions the "inefficiencies" of the federal insurance exchange and the fact that North Carolina did not create its own exchange. North Carolina's refusal to expand Medicaid has left about 21,000 people in New Hanover, Brunswick and Pender counties without insurance, Barto wrote.

Barto said the loss of funds makes it less likely that NHRMC will "be able to provide other services in the community."

Scott Whisnant, director of government relations at NHRMC, did not name any specific services the hospital might cut.

He said the hospital has been proactive in efforts to become more efficient and might not have to cut any services.

"We have a chance if we use our lean methodology and manage our operations well," Whisnant said.

At the end of his blog, Barto did point out some of the positive results from Obamacare. Its quality control measures reward hospitals for posting strong performances in mortality, readmission rate and patient satisfaction.

"If you keep patients healthy, you'll do better financially. That's the way it should work," Whisnant said.

Most hospitals in North Carolina have been fined for readmission rates that don't meet the federal standard; NHRMC has not been fined.

Last year, NHRMC trumpeted its status as one of the top 100 hospitals in the nation when ranked by financial health. Its 5 percent profit margin last year, Whisnant said, is strong "relative to our industry."

Barto cautions that profit margins could decline in coming years.

"Funding decisions at the federal and state levels are jeopardizing hospitals' financial health," Barto wrote.